When an income tax has a progressive rate structure, _____.
a. average tax rates are higher than marginal tax rates
b. marginal tax rates are higher than average tax rates
c. marginal tax rates are constant across all income ranges
d. average and marginal tax rates are equal across all income ranges
Question 2
If the supply curve for orange juice is estimated to be Q = 40 + 2p, then
A) supply is price elastic at all prices.
B) supply is price inelastic at all prices.
C) supply is elastic only at prices below 20.
D) No general statements about price elasticity of supply can be made.
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